Cardano Shines Under New IRS Liquidity Rules for ETP Staking
On November 10, the U.S. Treasury and IRS issued updated guidance outlining liquidity and custody requirements for crypto-based exchange-traded products (ETPs). The rules mandate that staked assets must be transferable within one business day, a standard that Cardano’s liquid staking model inherently meets. Unlike other proof-of-stake networks requiring token lock-ups, Cardano allows users to delegate ADA without forfeiting liquidity, positioning it favorably for inclusion in regulated ETPs. Cardano founder Charles Hoskinson celebrated the news on social media, highlighting the network’s native compliance. While a U.S. spot Cardano ETF supporting staking has yet to launch, Grayscale’s proposed ADA ETF is under SEC review, which could progress now that the government shutdown ended. Traders may view this as a catalyst for institutional adoption, potentially boosting ADA demand.
Bullish
The new IRS and Treasury liquidity guidance favors networks that support liquid staking without token lock-ups. Cardano’s native staking model meets the one-day redemption requirement, giving it a competitive edge for inclusion in regulated ETPs. Historical precedents show that clearer regulations and institutional product approvals often drive demand and price appreciation—similar to Ethereum’s growth after ETF expectations. In the short term, positive sentiment around compliance may boost trading volume and ADA price. Over the long term, easier ETP listing could attract institutional capital, supporting sustained bullish momentum for ADA.